How will the outage on WhatsApp affect META, the parent company?
Today, in the early Eastern Time Zone, WhatsApp was down for many users across the globe. You were unable to send or receive texts or media files until further notice. The icon was a clock waiting to be loaded, as it didn’t send your message. Good news for the people who were looking to delete their message without being sent, thank goodness. This outage could mean various reasons. However, let's go down the memory lane with META in crisis. Here is my analysis:
When Frances Haugen testified against Facebook, META, the parent company, lost more than $100 million in revenue in 2021. Then, there were the outages in 2015, 2014, 2013, 2010, and 2007. Outages before 2015 weren’t considered a major issue, as Facebook didn’t have a large market share with high advertising funds for their platform.
Today was the latest outage for META, WhatsApp platform, which occurred for more than 70,000 users. This outage will definitely kick back on the parent company on their stock valuation. It will create some headaches and possibly make some users leave the company, WhatsApp this time, for good.
The giant company needs to have a data hub center in each region and country to minimize their losses. These outages cause major damage to communication and flow of information for professionals, friends, and families. META operates in one region globally. Now is the time to diversify and channel out their operations to other places.
We understand that this is not possible based on the company's mission and goals. Although, it is a platform to make the users happy with their unique experience to have a working system on their apps.
With today's outage, META stock might open lower than their social media competitors. This will affect their user-based operation and possibly create a Doppler Effect among other platforms. With such errors, a user can wonder where they can turn to with lower intrusion of privacy and clearer communication with their network.
Please note: I am not licensed to recommend stocks or investment advice. If you decide to act on this blog, that is solely your choice. This is just a newsletter to help you become aware of certain tech stocks and their price values around the world.